CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Sophisticated systems
B) Environmental awareness
C) Openness to collaborate
D) Imagination to innovate
E) Continual service development

2. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Dimensions and Standards
B) Standards, Dimensions and Rewards
C) Dimensions and Rewards
D) Standards and Rewards

3. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) As part of DF's strategic review, identify forces facilitating the need for proposed change.
B) Identify forces facing DF's activities that may create barriers and resistance to change.
C) Identify influential senior managers who will drive through changes in DF's strategic direction.
D) Provide a framework for identifying forces for and against the proposed changes within DF.

4. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will the strategy maintain competitive advantage?
B) Will customers object to the strategy?
C) Will the business be able to deal with the responses of its competitors to the strategy?
D) Will the strategy exploit the core competencies of the business?
E) Will there be sufficient time to implement the strategy?

5. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) Cost reductions because of lower overheads and cheaper procurement.
B) An increased use of tacit knowledge.
C) Increased online revenues.
D) Easier access to loan finance.
E) Better control of information through monitoring website activity.
F) A reduction in labour turnover and higher morale.

Solutions: